(Yicai Global) March 2 -- Suyin KGI Consumer Finance, backed by the Bank of Jiangsu and Taiwan’s KGI Bank, was given the greenlight by regulators to start operations yesterday, in the first such approval this year, the Bank of Jiangsu said.

The consumer finance firm, which extends loans and insurance products to customers for business or personal use, is based in Kunshan, Jiangsu province where many Taiwanese businessmen are based. It is the third consumer finance firm on the mainland to receive investment from the Kaohsiung-based lender, and the second such company in the southeastern province.

Nanjing-based Bank of Jiangsu holds a 50.1 percent stake in the joint venture, which has a registered capital of CNY600 million (USD92.8 million). Other shareholders include store chain investment group Five Star Holdings and Heilan Home, a supplier of men’s fashions.

China is keen to bolster consumer credit which constitutes a big part of consumption. The country has licensed 30 consumer finance companies so far, and the number started to accelerate last year.

Editors: Tang Shihua, Kim Taylor